Omaha Mayor says sales tax increase won't be on the November ballot

A half-cent increase in Omaha’s sales tax could generate $45 million for the city.

Nebraska lawmakers last week overrode Governor Dave Heineman’s veto of legislation allowing cities to raise their sales tax rate. Doing so would require supermajority approval from both the city council and voters.

Omaha’s current sales tax rate is 7 percent, with 1.5 percent of it local. Mayor Jim Suttle says there are no plans to put the sales tax initiative on the November general election ballot.

Suttle says it’s an important option for the city to have if needed. But he says his administration will focus on managing revenues and expenses before considering a sales tax increase.

The law says the additional sales tax money could only be used for projects that are part of interlocal agreements. It would expire ten years after voter approval.